It was reported in the Telegraph UK newspaper that the UK tax man has made a major blunder in the tax bills. See this link.
http://www.telegraph.co.uk/finance/personalfinance/tax/11150266/Five-million-UK-workers-face-uncertainty-after-tax-bills-wrongly-calculated-twice-in-HMRC-blunder.html
Reading through, it sounds like only UK workers are impacted. There were duplicate entries for workers in their computer system, when employers submitted income information for their employees.
From the sound of it, overseas investors like us shouldn't be impacted, as we have to declare our rental income in the tax returns.
Speaking of tax returns, have you filed yours yet for the UK taxes? The deadline for paper returns is 31st Oct.
Thanks for reading.
Showing posts with label HMRC. Show all posts
Showing posts with label HMRC. Show all posts
Thursday, October 9, 2014
Monday, August 4, 2014
UK Taxman Turning Up The Heat (Telegraph Article 4 Aug 2014)
UK Taxman is turning up the heat on landlords who may not have declared their rental income and/or have under-declared.
See this article - (dated 4 Aug 2014)
http://www.telegraph.co.uk/finance/personalfinance/10999633/HMRC-turns-up-heat-on-landlords.html
The taxman will send 40,000 letters to landlords it suspects are not paying enough tax this year.
The Revenue has begun gathering information from a wider range of sources, accountants said. Mark Giddens, a partner at UHY Hacker Young, said HMRC had gone beyond the Land Registry and the electoral roll. “It was not until April this year that the taxman sent out notices to letting agents in which they asked for details to be provided of everyone on their books,” he said.
Looks like the UK Taxman is now getting information directly from lettings agents. With such information, they can easily match the records with the tax filing and then go after the landlords who have not declared their income.
Best to file your returns honestly and accurately!
Happy Investing!
See this article - (dated 4 Aug 2014)
http://www.telegraph.co.uk/finance/personalfinance/10999633/HMRC-turns-up-heat-on-landlords.html
The taxman will send 40,000 letters to landlords it suspects are not paying enough tax this year.
The Revenue has begun gathering information from a wider range of sources, accountants said. Mark Giddens, a partner at UHY Hacker Young, said HMRC had gone beyond the Land Registry and the electoral roll. “It was not until April this year that the taxman sent out notices to letting agents in which they asked for details to be provided of everyone on their books,” he said.
Looks like the UK Taxman is now getting information directly from lettings agents. With such information, they can easily match the records with the tax filing and then go after the landlords who have not declared their income.
Best to file your returns honestly and accurately!
Happy Investing!
Friday, March 21, 2014
UK TAXMAN Warns Buy-To-Let Investors
"Landlords who have failed to declare their rental earnings to HMRC are being warned to pay up or face higher penalties.
"The Revenue is targeting widespread tax evasion on property lettings, and estimates that one million buy-to-let and other private landlords are not declaring their rental income, cheating the public coffers of at least £550m a year. Many are understood to be using inflated claims for letting expenses to pay less tax than they should. "A lot of people are knowingly not declaring," said an HMRC spokesman. "We want to hammer down that £550m – it's significant money."
"HMRC is running a Let Property Campaign to encourage landlords to come clean, or risk higher penalties. As well as those with undeclared rental earnings from previous years, the campaign is aimed at landlords who have filed inaccurate tax returns."
See more details from this news article from the Guardian Newspaper (UK).
Let Property Campaign - https://www.gov.uk/let-property-campaign
Quoted from UK HMRC website:
The Let Property Campaign gives you an opportunity to bring your tax affairs up to date if you’re an individual landlord letting out residential property in the UK or abroad and to get the best possible terms to pay the tax you owe.
Your UK Tax Obligations
If you own a buy-to-let property in the UK, you will be liable for UK Income Tax on your lettings income.
In our experience, the UK HMRC is quick to notify us of our obligation to file returns under their Self-Assessment system. We have been filing our returns and paying our taxes for several years now. We are happy that our taxes with the UK HMRC are up-to-date. It came as a surprise to read the UK news that the UK Taxman was now clamping down on all these tax evaders.
We will blog about filing UK taxes at a later time. Suffice to say, pay your fair share to the UK Government if you are deriving rental income from the UK. It is only right to do so!
Happy investing!
"The Revenue is targeting widespread tax evasion on property lettings, and estimates that one million buy-to-let and other private landlords are not declaring their rental income, cheating the public coffers of at least £550m a year. Many are understood to be using inflated claims for letting expenses to pay less tax than they should. "A lot of people are knowingly not declaring," said an HMRC spokesman. "We want to hammer down that £550m – it's significant money."
"HMRC is running a Let Property Campaign to encourage landlords to come clean, or risk higher penalties. As well as those with undeclared rental earnings from previous years, the campaign is aimed at landlords who have filed inaccurate tax returns."
See more details from this news article from the Guardian Newspaper (UK).
Let Property Campaign - https://www.gov.uk/let-property-campaign
Quoted from UK HMRC website:
The Let Property Campaign gives you an opportunity to bring your tax affairs up to date if you’re an individual landlord letting out residential property in the UK or abroad and to get the best possible terms to pay the tax you owe.
If you owe tax on your letting income you’ll need to tell HM Revenue and Customs (HMRC) about the income you haven’t declared by making a voluntary disclosure.
To get the best possible terms, you must tell HMRC that you wish to take part by filling in a notification form or calling the Let Property Campaign helpline on 03000 514 479. You’ll then have 3 months to calculate and pay what you owe.
To get the best possible terms, you must tell HMRC that you wish to take part by filling in a notification form or calling the Let Property Campaign helpline on 03000 514 479. You’ll then have 3 months to calculate and pay what you owe.
Your UK Tax Obligations
If you own a buy-to-let property in the UK, you will be liable for UK Income Tax on your lettings income.
In our experience, the UK HMRC is quick to notify us of our obligation to file returns under their Self-Assessment system. We have been filing our returns and paying our taxes for several years now. We are happy that our taxes with the UK HMRC are up-to-date. It came as a surprise to read the UK news that the UK Taxman was now clamping down on all these tax evaders.
We will blog about filing UK taxes at a later time. Suffice to say, pay your fair share to the UK Government if you are deriving rental income from the UK. It is only right to do so!
Happy investing!
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